Weak demand and sales decline characterize Sunways’ first quarter


The German solar components and systems manufacturer also saw decreases in its gross performance and EBIT, although the results were not as negative as its sales decline.

Having achieved a gross performance of €44.3 million in the first quarter of 2010, Sunways expects to reap just €44.3 million this quarter. Meanwhile, its EBIT took a tumble from €4.7 million in the first quarter of last year to €-3.5 million in the first quarter of 2011.

In a statement, the company explains: "The weak sales development in the past quarter was mainly due to weak market demand and the resulting unexpectedly high inventory levels at various levels of trade. As a result of the, at times, very limited availability of solar modules and in particular solar inverters in the past year, wholesalers and installers had built up inventories towards the year-end which were not sufficiently reduced due to the weak demand in the first months of the current year."

Consequently, Michael Wilhelm, chairman of Sunways management board states that the company does not believe it will meet its originally targeted double-digit percentage sales growth this year. He says that it will adhere to its earnings target, however, and still hopes to achieve an EBIT margin in the lower single-digit percentage range.

Wilhelm adds: "In order to reach our earnings target for the current year, we will promptly take all measures on the sales side as well as with regard to costs."

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Germany’s balcony PV installations hit 200 MW in H1

19 July 2024 Germany's Federal Network Agency (Bundesnetzagentur) says 220,000 balcony PV systems were installed in the country in the first half of the year, reac...


Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.